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work must be shown Colavito Airlines' ground handling department has assigned all overhead costs into seven activity cost pools. The budgeted amounts and the associated

work must be shown

Colavito Airlines' ground handling department has assigned all overhead costs into seven activity cost pools. The budgeted amounts and the associated cost drivers for these cost pools are as follows:

ActivityBudgetedBudgeted Level

Cost PoolCosts Cost Driverfor Cost Driver

Loading and unloading cargo$250,000Pounds of cargo2,000,000 lbs.

Directing planes to and from gates110,000Directing distance5,500 miles

Loading and unloading baggage300,000Bags loaded & unloaded100,000 bags

Communicating with pilots80,000Communication time2,000 hours

Fueling planes450,000Fueling time10,000 hours

Deicing planes75,000Deicing time1,000 hours

Locating mishandled bags200,000Number of inquiries5,000 inquiries

Total$1,465,000

Flight #1025 has just been completed with the following cost driver information available:

Pounds of cargo 37,000

Directing distance (miles)2.3

Bags loaded & unloaded 250

Communication hours1.4

Fueling hours3.7

Deicing hours0.3

Number of inquiries4

  1. [3 pts.] Compute the total overhead cost assigned to Flight #1025, using an overall overhead rate based on number of bags loaded and unloaded:

$ ___________________

  1. [7 pts.] Compute the total overhead cost assigned to Flight #1025, using activity-based costing: $ _________________

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